The top cyber threats facing the manufacturing industry are ransomware, supply chain attacks, insider threats, phishing and social engineering attacks. In 2023, the manufacturing sector accounted
The financial industry experienced the second-highest data breach cost in 2023, according to IBM. This includes breaches that affected credit unions as well as other financial institutions. But, despite costs, what else is at stake if a credit union is breached?
If a credit union is breached, customer Personally Identifiable Information (PII) is at risk of being exposed and used for malicious purposes such as identity theft and fraud. Additionally, credit unions risk losing customer trust, experiencing a tarnished reputation and losing money from downtime.
Continue reading to learn about the cybersecurity challenges credit unions face and how credit unions can mitigate data breaches.
Cybersecurity challenges credit unions face
Some cybersecurity challenges credit unions face include using outdated technology, needing an internal incident response plan and failing to meet cyber insurance requirements.
Outdated technology
Unlike major banking institutions, credit unions are smaller, meaning they operate with a smaller staff and don’t have as many resources. Because of this, credit unions often operate using outdated systems that lack security. This opens up security gaps that make it easier for cybercriminals to successfully target them with cyber attacks.
Lack of an internal incident response plan
Incident response plans are created in case an organization experiences a data breach. This response plan assigns responsibilities and lists the procedures that should be followed if a breach occurs, helping minimize the duration and damage that an incident causes. Since credit unions may have fewer internal resources than large banks, they are often forced to outsource help when an incident like a breach occurs. This can make it more challenging for credit unions to respond to a breach and cause systems to be down for a longer period. When a breach occurs, every second counts, and responding to it as soon as possible is crucial. Lacking an internal incident response plan can be extremely damaging for credit unions.
Not meeting cyber insurance requirements
As cyber threats continue to increase, more organizations are seeking out cyber insurance. As a result, cyber insurance premiums are on the rise and cyber insurers are expanding the requirements to qualify for coverage. Many organizations, including credit unions, have yet to obtain cyber insurance because they haven’t met the requirements such as implementing access management, and providing employees with security awareness and training.
What’s at stake for customers if their credit union is breached
Here’s what’s at stake for customers if their credit union experiences a breach.
Customers could have their PII leaked
When you sign up with any type of financial institution, they’re in charge of securely storing your PII such as your full name, home address and Social Security number. This requires that these financial institutions have security controls in place to protect your PII from unauthorized access. However, if a credit union experiences a breach and doesn’t have adequate security controls in place to protect your data, your PII is at risk of being leaked. Once leaked, a cybercriminal could steal your PII and publish it on the dark web.
Customers could have their identity stolen
If your credit union experiences a data breach, it also places your identity at risk of being stolen because your PII could be leaked. If your identity is stolen, cybercriminals can use it to take out credit accounts under your name, which can cost you money, hurt your credit score and affect your ability to take out loans in the future.
Customers could have their money stolen
In addition to having your PII leaked and your identity stolen, if your credit union experiences a breach you could also have money stolen from your accounts. If you used the credit union for your checking or savings, your accounts could be drained, preventing you from using any funds that you may have had.
What’s at stake for credit unions if they’re breached
Here’s what’s at stake for credit unions if they experience a breach.
Credit unions could lose customer trust
When credit unions experience a data breach and customers are impacted, customers will lose trust. According to a survey conducted by Entrust, 67% of respondents who were notified of fraud moved to a different bank or credit union as a result. This tells us that customers who believe their financial institution isn’t secure won’t hesitate to switch to another, more secure option if they need to.
Credit unions could experience a tarnished reputation
When a breach occurs at any organization, news coverage tends to come out so consumers are aware of the breach. This can lead to the organization suffering a tarnished reputation for years to come. Customers will no longer want to do business with them. Additionally, customers who were affected by the breach may encourage others to avoid doing business with the credit union because their data was not protected.
Credit unions could lose money from downtime
When credit unions suffer a data breach, they don’t only lose money from having it stolen, they can also lose money from system downtime. The longer a credit union is in the middle of a breach, the more money it loses because no one can do their jobs, meaning they aren’t able to make any revenue.
How Keeper® can help credit unions mitigate data breaches
Keeper can help credit unions mitigate the risks that lead to data breaches by helping them meet compliance requirements set by the National Credit Union Administration (NCUA), here’s how:
NCUA Compliance Requirements | How Keeper Helps |
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Ensure the security and confidentiality of member records. | With Keeper, credit unions can enforce the use of strong, unique passwords for every account while also aiding with secure password storage. Credit unions can manage access to various systems with a centralized platform that allows them to assign specific permissions to employees based on their roles. |
Protect against the anticipated threats or hazards to the security and integrity of such records. | Credit unions can seamlessly integrate Keeper with Multi-Factor Authentication (MFA), providing an extra layer of security to prevent unauthorized access. |
Protect against unauthorized access to or use of such records that could result in substantial harm or serious inconvenience to a member. | Credit unions can securely store sensitive data such as credentials and files in an encrypted repository that can only be accessed by authorized individuals. |
Respond to incidents of unauthorized access to or use of member information that could result in substantial harm or serious inconvenience to a member. | Credit unions can log and monitor access to critical resources. They can also monitor password change activity. Keeper’s Advanced Reporting and Alerts Module (ARAM) audits and monitors more than 100 different event types and provides real-time alerts and integration into 3rd party SIEM. |
Ready to protect your credit union against data breaches? Start a free 14-day business trial of Keeper today.